10-44 Protection Against Default –Serial bond issue: firms sell bonds with sequential maturity dates such that the principal repayment burden is sprea
{"Image DocumentName": "Protection Against Default", "Image ImageDescription": "Serial bond issue: firms sell bonds with sequential maturity dates such that the principal repayment burden is spread over time just like the sinking fund scheme. Dividend restrictions (\u80a1\u5229\u9650\u5236\u689d\u6b3e) One common used dividend payment restriction is that the dividend distribution is allowed only when the firm makes profits (after the payments of interest expenses) and the maximum distributed dividend cannot exceed the profits. It protects bondholders because it forces the firm to retain assets rather than pay them out to stockholders.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}